BICO reports modest loss

Local Ice Cream Manufacturer BICO Limited is reporting a financial loss despite growing its revenue over the past year.

This is due to persistently high energy costs and the escalating cost of imported inputs.

The company’s executive chairman Edwin Thirlwell, who at 90 years old is proposed to be re-elected for a one-year term, said that BICO’s operations were also being impacted by an accounting standard revision implemented in 2024.

This information is detailed in BICO’s annual report for the financial year ending September 30, 2025.

In a report on behalf of the board of directors, Thirlwell said the last financial year “was marked by volatility, as anticipated, with heightened competition across our core ice-cream market segments”.

He shared that “despite this increasingly competitive environment, the company recorded sales revenue growth of seven per cent, demonstrating the continued strength and resilience of the BICO brand”.

The executive chairman added, however, that “notwithstanding the growth in revenue during the year,
the company recorded a modest net loss of $317 188”.

“This outcome was largely driven by persistently high energy costs, which are projected to increase further, and the escalating cost of imported inputs,” he explained.

“These factors remain outside of the company’s direct control and continue to constrain our ability to preserve margins, while maintaining competitive pricing within the local market.”

Thirlwell also noted that “the effect of the revision to International Accounting Standard 19, which was implemented in 2024, and reported on in the 2024 report, continued to negatively impact the performance of the company in 2025”.

“The net assets of the pension plan of $579 229 (2024 – $583 089) are again not recognised in the company’s statement of comprehensive income or the statement of financial position,” he said.

“Recognition of the net assets in the company’s statement of comprehensive income would have resulted in net income of $262 041 for 2025 ($423 440 for 2024). Changes in certain demographic assumptions have also resulted in a higher value of funded obligations in 2025.”

Despite these challenges, Thirlwell said that “encouragingly, the company has delivered a strong start to the first quarter of the 2026 financial year”.

“Early indicators suggest that the measures being implemented are beginning to yield positive results and we remain cautiously optimistic that this momentum will continue into the coming quarters,” he said.

“The board remains committed to prudent financial management, operational efficiency and strategic investment to ensure that BICO continues to deliver long-term value for its shareholders, while maintaining the quality and reliability our customers have come to expect.

“We extend sincere thanks to our shareholders, employees, customers, and business partners for their continued support and confidence in BICO Limited.”

The report also announced that “after careful consideration, the board of directors has recommended that no dividend will be paid for the year ending September 30, 2025”.

BICO is scheduled to hold its annual general meeting on April 21 where, in addition to Thirlwell’s proposed re-election to his current post, director Robert Foster is proposed to return as director for a three-year term.

The other board members are Gregory Hinkson, Peter Downes and Kathyann Ollivierre. 

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